Liz Divides Its House in Two
Liz Claiborne Inc.’s new chief executive is shaking things up at the New York–based apparel and accessories giant.
On the job nearly eight months, William McComb on June 20 said he is splitting the nearly $5 billion company into two divisions, which will be outlined in detail during the company’s July 11 Investor Day.
One division is for direct brands, which includes Juicy Couture, Lucky Brand Jeans, Kate Spade, Mexx and Sigrid Olsen, as well as the company’s outlet and e-commerce business. The founders of Los Angeles– based Juicy Couture—Pamela Skaist-Levy and Gela Taylor—and Vernon, Calif.–based Lucky Brand founders Gene Montesano and Barry Perlman will stay on.
Juicy Couture, Kate Spade, Lucky Brand and Mexx will have their own distinct marketing and licensing functions.
The other division is its wholesale “partnered” brands, such as Liz Claiborne, Dana Buchman, Ellen Tracy, Monet, Laundry by Design, Prana, C&C California, and DKNY jeans and activewear.
The partnered-brands division will work on partnerships with the company’s retail customers to focus on highly desired products that will turn faster.
While McComb announced the company will eliminate five group president positions, many of those jobs will be rolled into division positions.
In addition, Andrew Warren was named the company’s new chief financial officer, effective July 9.
The shake-up occurs after the company posted a 20 percent net income drop last year on $4.99 billion in revenues. The outlook for 2007 is expected to be weaker than previously expected.
In May, McComb, a former pharmaceutical executive, said that in recent months department stores, including Macy’s and Dillard’s, have been asking apparel makers for increased profits while stepping up their own store label offerings at the expense of their suppliers’ brands. Such changes have resulted in a dramatic cutback in Fall 2007 orders.
McComb wants to focus on growing the company’s power brands, which include Juicy Couture, Lucky Brand, Kate Spade, Mexx and Liz Claiborne.
—Deborah Belgum
